PayPal exchange rates

Discussion in 'PayPal' started by vipul_delhi, Apr 2, 2010.

  1. #1
    Hello friends,

    As I write this, paypal shows an exchange rate of Rs 43.19 to a dollar.
    We all know how pathetic exchange rates offered by paypal are, and there
    is simply nothing we can do about it :( , but I was curios to know how paypal calculates
    exchange rates and are they allowed to give lower rates than what is prevailing in the
    market.
    I checked on XE.com and it shows Rs 44.74 to a dollar.

    Regards,
    Vipul
     
    vipul_delhi, Apr 2, 2010 IP
  2. unna

    unna Well-Known Member

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    #2
    It is right. Paypal is giving around 1 rs low as current rate. But don't know why?

    May be it is their processing fees because no one works for free.
     
    unna, Apr 2, 2010 IP
  3. WordPressThemes

    WordPressThemes Member

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    #3
    I really hate this, the fees is applied, but the exchange rates is always lower than others
     
    WordPressThemes, Apr 2, 2010 IP
  4. vipul_delhi

    vipul_delhi Peon

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    #4
    I also used to think that they give 1rs lower than market but, looking now (44.74-43.19 = 1.55) is more than a rupee....don't know whats going on.
    I know that nothing is free. Their services also cost. But then, they charge good 3.9% + $0.3 USD on every transaction....so makes you wonder, why they
    cannot give a good exch.rate :(
     
    vipul_delhi, Apr 2, 2010 IP
  5. Adraco

    Adraco Active Member

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    #5
    All money transfers cost, and all money exchanges cost. And as a monopoly player, Paypal knows that people are pretty much stuck with their solution and therefore sets their own exchange rates. Paypal also don't work with avista rates, they have a set rate for the day and or only changes it a few times per day, while it on themarket flows back and forth all the time. To protect itself from losing money, Paypal sets a security level, to make sure that they always make money.

    They are simply put only protecting their business. It's free to use their service and accept the fees or you are just as free to take your money and walk away, good luck finding some other payment processom with the same level of acceptance, security and ease of use.
     
    Adraco, Apr 2, 2010 IP
  6. nareshrevoori

    nareshrevoori Peon

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    #6
    Just another way of holding your money for interest:)
     
    nareshrevoori, Apr 2, 2010 IP
  7. linkstrade

    linkstrade Active Member

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    #7
    paypal take money conversion charge 1.5/- per dollars thats why paypal exchange rate is 1.5/- lower than market rate.


     
    linkstrade, Apr 2, 2010 IP
  8. RightMan

    RightMan Notable Member

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    #8
    Paypal is known to charge hefty conversion fees.... and they still have the nerve to list the withdrawal service... as FREE! :mad:

    Regards,

    RightMan
     
    Last edited: Apr 2, 2010
    RightMan, Apr 2, 2010 IP
  9. Dhaval1983

    Dhaval1983 Peon

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    #9
    Well, they are the king in payment processing at the moment so it is obvious to happen.
     
    Dhaval1983, Apr 2, 2010 IP
  10. unna

    unna Well-Known Member

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    #10
    who can say that they will start charging when we withdraw to our bank account???
     
    unna, Apr 3, 2010 IP
  11. magicworld11

    magicworld11 Well-Known Member

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    #11
    This is the way how paypal earns. You can simply think that Rs. 50 is very low fee for cross border money transfer.
     
    magicworld11, Apr 3, 2010 IP
  12. psharma

    psharma Prominent Member

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    #12
    They have a different exchange rate for 1 currency to other and yet another rate from the other currency to 1st again. The difference is sufficient to make them earn sufficient to run the company : )
     
    psharma, Apr 3, 2010 IP
  13. Safetyfirst

    Safetyfirst Active Member

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    #13
    Well conversion always attract hefty fees anywhere , try depositing a usd cheque in an indian bank account and see how much fee they deduct.
     
    Safetyfirst, Apr 3, 2010 IP
  14. earnincome

    earnincome Peon

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    #14
    It is very sad that paypal is charging a lot of fees in exchange. They are earning a lot from this exchanges only. We have to take some actions on them. They always give less rate than the current dollar price.
     
    earnincome, Apr 3, 2010 IP
  15. xplosion79

    xplosion79 Peon

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    #15
    Its your choice.
    You can stop using paypal if you think it is unfair to you.
    And they are giving their exchange rates. Its upto you to take it or not :)

    They are of course earning.They are here for earning.Not for charity.
     
    xplosion79, Apr 3, 2010 IP
  16. eadler25

    eadler25 Peon

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    #16
    agree with u

    if they will give you full rates then how they will pay to employee and office expanses ... lol
     
    eadler25, Apr 3, 2010 IP
  17. Adraco

    Adraco Active Member

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    #17
    Here people in India, read up: https://www.paypal.com/in/cgi-bin/webscr?cmd=_display-fees-outside
    Paypal takes out 2.5% exchange rate fee. If you have so many complaints, why not move to another payment processor? It's a free market, but don't come around saying "no one has the same service" because that's exactly what you are paying for! So shut up and put up!
     
    Adraco, Apr 8, 2010 IP
  18. vipul_delhi

    vipul_delhi Peon

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    #18
    wooo....cool down bud !! lets keep it calm, its just a discussion going on.... :)
    thanks for the link !!
     
    vipul_delhi, Apr 8, 2010 IP
  19. Arania

    Arania Peon

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    #19
    Hello,

    I agree with what Adraco says. They are here to earn and it's upto you to decide who you would like to use. And PayPal is not an exception here. Most private banks in India charge around 2-3% for such transactions (for ex. cashing out a check in USD or some other currency). And you can't do anything about it.

    So just stay cool.

    Regards,
    Arania
     
    Arania, Apr 8, 2010 IP